Tax Reforms And GST

 Tax Reforms And GST

It is vey interesting to note that India has had seen various tax reforms like CENVAT & VAT . The biggest tax reform will be the much awaited Goods & Service Tax (GST) in India .

The saga of tax reforms in India and the implementation of GST in other parts of the world can be understood from the following :

1.Tax reforms started in India from 1974 i.e almost 41 years back.

2.India began talking about GST since 2007 when Mr. P. Shome  released a white paper on GST .

3.It was followed by Finance Minister of India  announcing the vision of  GST during his F.Y 2007 budget speech .

4.India committed to GATT for implementation of GST by 2009-2010 . But, we failed miserably to make a consensus amongst various states of India. 

5.So far almost 161 countries has implemented the GST worldwide.

6.The last country to implement GST was Malaysia w.e.f 1st April 2015 .

7.GST was first introduced in Singapore on 1 April 1994 and the first GST rate was  3%.

8.The GST rate in Singapore was increased to 4% in 2003 and then to 5% in 2004. At present, GST rate is 7% in Singapore .

9.Indian GST model have framework from  Brazil and Canada . However, oflate we are influenced by Malaysia model as well.

10. The reason of following Brazil was its structure of  27 states nearing to the Indian structure .

11. Brazil has average GST rate of  17% . Whereas, Indian average rate is also going to be 17%-18% .

12. Canada had introducted GST in January 1991. It is pertinent to note that the implementation of  GST  saw controversies at par  India before GST was finally implemented in Canada . 

13.GST in India will boost the GDP of India by 2% . This  boost in GDP can be very substantial especially when European nations are struggling to achieve  a growth in GDP even by 0.5% .

Hence, GST really matters the most for real growth of India .

 Are you ready for GST in India ?